Pre-payment to Tegeta Resources helped Guptas to buy Glencore: Daniels

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Former Eskom company secretary Suzanne Daniels has failed to explain to the State Capture Commission why she did not advise the 2014 Eskom board that a R1.6 billion pre-payment contract they had approved was for the Gupta-owned Tegeta Resources instead of the Glencore Optimum Coal Mine.

In 2015, the power utility approved the payment thinking it was to Glencore. Tegeta was at the time negotiating to buy Glencore.

Eskom’s then Chief Executive Officer Brian Molefe cancelled negotiations between Eskom and Glencore to pave the way for Tegeta to buy the mine.

Daniels conceded that the pre-approval payment helped the Guptas to buy Glencore.

“Why conclude such an agreement with the non-owner at the time when there is an owner that is known to you as Eskom?” asked Zondo.

Daniels responded: “I accept that. And that’s a question you will have to ask the executives and the boards.”

Zondo further questioned: “Well, you too because you were the company secretary and the legal advisor for the board. You were supposed to alert them.”

“I accept that. Yes,” said Daniels.

Suzanne Daniels’ full testimony at the State Capture Commission: